July 16, 2024 at 08:01AM
AutoNation reported a negative impact on quarterly earnings due to a ransomware attack that disrupted CDK Global’s systems. The incident affected core functions, with an estimated impact of $1.50 per share. While most systems have been restored, certain integrations remain unavailable. However, AutoNation expects no material impact on its overall financial condition.
From the meeting notes, the key points to take away are:
– A ransomware attack disrupted CDK Global’s systems, negatively impacting AutoNation’s quarterly earnings.
– The attack affected core functions such as sales, service, inventory, customer relationship management, and accounting functions at AutoNation.
– Most of AutoNation’s systems have been restored, but certain ancillary systems and integrations remain unavailable or limited.
– The estimated impact on earnings per share for the quarter ending June 30, 2024, is approximately $1.50 per share, including one-time costs related to recovery.
– CDK Global customers had to resort to using pen and paper for approximately two weeks before the software-as-a-service company restored its systems.
– CDK Global reportedly paid out $25 million in cryptocurrency to a BlackSuit ransomware affiliate.
These are the key takeaways from the meeting notes.